California citizens in the United States had been waiting for weeks for the final announcement from the IRS regarding the Middle Class Tax Refund payment. This relief check came to Californians in order to be able to pay all the bills without problems and not to gain purchasing power.
Therefore, the IRS has decided to accept these Middle Class Tax Refund checks as some relief, so Californians will finally not pay taxes on them. This is very good news, as Californians were waiting for a final response from the IRS for weeks.
These checks ranging from $200 for singles to $1,050 for families will not influence the tax return. So the tax refund will not be affected by this relief check that citizens received last year. The IRS will take into account the rest of the income of Californian families.
IRS Tax Return
The Internal Revenue Service sent millions of Californians a 1099 tax form. This tax form is to report these relief check payments as income. Finally the Internal Revenue Service has announced that reporting the Middle Class Tax Refund will not be mandatory. So Californians can breathe easy.
IRS Enrolled Agent Norman Golden stated that “The IRS just issued just minutes ago a notice that taxpayers in California will not have to report the payments on their 2022 tax returns.” He also assured that “My clients and taxpayers in California will be very happy that the IRS is not going to tax them for these payments.”
Not mandatory but recommended
Norman Golden, an IRS Enrolled Agent and expert on the subject, said that although it is not mandatory to file this Middle Class Tax Refund, it is advisable to do so. It will not negatively affect our tax return, so there is nothing to worry about.
Therefore, it is advisable to send the 1099 form along with the tax return. We should elect to have the income reduced by the “general welfare” exclusion. If we do this, we will prevent the IRS from claiming these taxes in the future.
Thanks to sending the 1099 form with our tax return we will forget about problems related to the IRS. At least in this specific situation. Remember that in case we are not completely sure that we are doing everything right, expert advisors can help us to file our tax return.
It is also possible to contact the Internal Revenue Service to ask any questions we may have. And thanks to Free File there is the possibility of receiving free direct help if we meet the specific requirements to apply for this IRS program.